An Information Processing Model of Organizational Control : A Computational Model of System-Level Effects

This paper investigates issues surrounding the implementation of complex control systems. This study adopts an information processing perspective to explain why effective managers use multiple forms of control and select distinct combinations of multiple controls in different control system environments. We use a computational model to build three forms of control systems (market, bureaucratic, clan) and seven control target combinations (input, process, output, input/process, process/output, input/output, input/process/output). Using this model, we examine how effectively managers operating in different control environments direct various types of organizational tasks using different combinations of control mechanisms. Results of this study demonstrate that effective managers use multiple controls to distribute decision-making responsibilities between themselves and their subordinates. The authors suggest that findings from this study should also direct scholars to incorporate the value of both an information-processing perspective and measurement models in future control research. Furthermore, the study concludes with a discussion of the contribution of computational models to control research.

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